New GST rates: A boon for agriculture and farmersÂ’ prosperity
GST
Dated:- 9-9-2025
“The nation is grateful to Prime Minister Shri Narendra Modi and the Finance Minister for the GST reforms”: Union Agriculture Minister Shri Shivraj Singh Chouhan
“New chapters of growth will be written in agriculture, and we will see positive results in every sector” – Union Agriculture Minister Shri Chouhan
The new GST (Goods and Services Tax) rates mark a major transformation in the agriculture and dairy sectors. With the reduction in GST rates, farmers, agricultural and dairy workers, and livestock owners across the country are expressing joy and gratitude to Prime Minister Shri Narendra Modi and Union Finance Minister Smt. Nirmala Sitharaman. Union Agriculture Minister Shri Shivraj Singh Chouhan termed the new rates a revolutionary decision, expressing hope for historic changes.
The impact of the GST reforms will be widely seen among small and medium farmers. Lower GST on agricultural
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ill get cheaper
Nuts to cost less
Boost to food processing
No GST on milk and cheese
Promotion of indigenous products
GST reduced on 'prepared/preserved fish'
Natural honey to cost less
Reduced GST on tendu leaves
Detailed impact of GST cuts on various sectors
Agricultural Mechanisation
* GST on tractors (<1800 cc) reduced to 5%.
* Tractor parts, including tyres, tubes, hydraulic pumps: GST cut from 18% to 5%.
* Sprinklers, drip irrigation, harvesting machinery, tractor parts: GST cut from 12% to 5%.
* Fixed speed diesel engines (>15 HP), threshing/harvesting machines, compost machines: GST cut from 12% to 5%.
* Lower tractor prices will make mechanisation accessible to small and medium farmers, saving time, reducing labour costs, and improving productivity.
OLD AND NEW GST DIFFERENCE CALCULATION FOR VARIOUS SOME OF THE POPULAR AGRICULTURAL MACHINERY & EQUIPMENTS :-
Sl.No.
Name of Agricultural Machinery & Equipment
Basic cost of Agricultural Machinery & Equ
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0
2,300
48,300
3,220
Seed cum Fertiliser Drill – 13 Tine
62,500
7,500.00
70,000
3,125.00
65,625
4,375
Harvester Combine
14 feet Cutter Bar
26,78,571
3,21,428
30,00,000
1,33,928
28,12,500
1,87,500
Straw Reaper
5 feet
3,12,500
37,500.
3,50,000
15,625
3,28,125
21,875
Super Seeder
8 Feet
2,41,071
28,928.57
2,70,000
12,053
2,53,125
16,875
Happy Seeder
10 Tine
1,51,786
18,214
1,70,000
7,589.29
1,59,375
10,625
Rotavator
6 Feet
1,11,607
13,392
1,25,000
5,580
1,17,187
7,812
Baler Square
6 feet
13,39,286
1,60,714
15,00,000
66,964
14,06,250
93,750
Mulcher
8 Feet
1,65,179
19,821
1,85,000
8,258
1,73,437
11,562
Pneumatic Planter
4 Row
4,68,750
56,250
5,25,000
23,437
4,92,187
32,812
Sprayer Tractor Mounted
400 Liter capacity
1,33,929
16,071
1,50,000
6,696
1,40,625
9,375
Fertilisers
* Ammonia,
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, etc., cut from 12% to 5%.
* Dairy farmers' products made more competitive
* Milk cans (iron/steel/aluminum) now at 5% instead of 12%.
* Boost to indigenous dairy products.
Aquaculture
* GST on 'prepared or preserved fish' reduced from 12% to 5%.
* Likely to encourage aquaculture and fish farming nationwide.
Honey
* GST reduced on natural honey, benefitting beekeepers, tribal communities, and rural SHGs.
* GST on artificial honey (whether blended with natural or not) cut from 18% to 5%.
Solar-Powered Equipment
* GST on solar-powered devices reduced from 12% to 5%.
* Affordable solar equipment will lower irrigation costs, helping farmers.
Tendu Leaves
* GST reduced from 18% to 5%.
* As tendu leaves are a key source of income for farmers and tribals in Odisha, Madhya Pradesh, and Chhattisgarh, this cut will strengthen livelihoods in these states.
On the whole, the GST rationalization in agriculture is a farmer-friendly, pro-rural, and pro-sustainability reform
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